Treasurer Jim Chalmers handed down the 2026-27 Federal Budget on 12 May, and the question I have fielded most since is a plain one. What do I actually do now? A Budget announcement is not tax law, and the gap between the two can run for years. The measures that protect cash flow are rarely the ones that dominate coverage.

Announced and legislated are not the same thing  

This is where planning most often comes unstuck. The permanent $20,000 instant asset write-off for businesses under $10 million in turnover was announced to apply from 1 July 2026, and the ATO still describes it as not yet law. Until the enabling bill passes, the threshold sitting in the legislation is $1,000. Most practitioners expect it through, since the concession has been extended annually for a decade. Expectation is not certainty, and it makes a poor basis for signing a finance contract. Ask whichever adviser you engage, whether found by referral or a tax consultant near me search, which measures are law and which are still announcements.

Buy the asset because the business needs it  

An immediate deduction reduces taxable income. It does not refund the purchase. A company on the 25 per cent rate spending $18,000 on a machine saves $4,500 in tax and remains $13,500 out of pocket. That works when the machine earns its keep, and fails when it was bought to chase a deduction. Timing deserves equal discipline. The asset must be first used or installed ready for use inside the income year, so equipment ordered in June and delivered in August belongs to the next one.

Loss carry-back changes the maths on a bad year  

Companies gain something genuinely useful. For income years starting on or after 1 July 2026, an eligible company that falls into a tax loss can carry it back against tax paid in either of the two preceding years and claim a refund. The $1 billion turnover threshold captures nearly every private company in the country. The real limit sits in the franking account, where refunds are capped at the balance. A business that has paid out heavily franked dividends may recover far less than the loss figure suggests.

Instalments are where cash flow quietly disappears  

PAYG instalments are worked out from your last lodged return and adjusted by a GDP factor. A business whose revenue has fallen is therefore prepaying tax on income it no longer earns. Useful tax planning strategies deal with timing before deductions, and an instalment can be varied during the year without waiting for anything to pass Parliament. From 1 July 2027, businesses can opt in to monthly instalments drawn from live software data. Taxpayers with a history of non-compliance will be shifted to monthly reporting regardless.

Trusts need a decision well before 2028  

A 30 per cent minimum tax on the taxable income of discretionary trusts begins on 1 July 2028. Individual beneficiaries receive non-refundable credits for tax the trustee has already paid. Corporate beneficiaries receive none, which retires the bucket company as a deferral tool. Rollover relief runs for three years from 1 July 2027, letting eligible groups move into a company or fixed trust without triggering income tax or CGT. Family groups holding property or investments in a trust should model this now.

Make tax a habit rather than an annual event  

The tax planning strategies that hold up over time are unglamorous and repetitive. Reconcile GST quarterly instead of at lodgement. Hold PAYG withholding and superannuation in a separate account so the money is there when due. Review the profit position in March, while a decision can still change the outcome. Owners tend to search for a tax consultant near me in the week something has gone wrong, which is the most expensive week to start. Advisers such as DFK BKM will tell you the same.

Sound tax planning strategies work from the law as it stands. A tax consultant near me search in August is worth more than the same search next June.

Frequently asked questions  

1. How does the Federal Budget affect Australian businesses?

The Budget signals changes to deductions, instalments, company losses and trust taxation. Most measures need legislation first, so the effect on your business cash flow arrives gradually rather than immediately.

2. What tax planning strategies can help improve business cash flow?

Useful options include varying PAYG instalments, timing asset purchases to the income year, carrying company losses back against earlier tax paid, and quarantining GST and superannuation in separate bank accounts.

3. Why is tax planning important after the Federal Budget?

Announced measures alter deduction timing, refund entitlements and structuring decisions. Reviewing your position early identifies which changes are law, which remain proposals, and where your own tax liability actually shifts.

4. When should businesses start planning for tax changes announced in the Federal Budget?

Start immediately, and certainly before the third quarter closes. Trust restructures, asset purchases and instalment variations all need lead time, and decisions made late in June rarely change the outcome.

5. How can a professional accountant help businesses respond to the Federal Budget?

An accountant separates legislated rules from proposals, models the cash flow effect on your structure, adjusts instalments, and times purchases or restructures so obligations land when the funds are available.